Saturday, November 23, 2013

3 Top Debt Free Stocks with Lots of Cash and Paying Dividends

Up until recently, one of the popular features of Apple (AAPL) was the fact that the company had no debt and a huge amount of cash. And over the last five years, the stock has appreciated from around $80 a share to over $500 a share. I've always been a big fan of debt free stocks, and when I find one with lots of cash, that's just icing on the cake. If it also pays a dividend, that's an added bonus. 

Do You want to Position Your Portfolio with this Stock?

Fortunately, there are several companies that fall into the category of high cash, debt free, and dividend paying. Garmin (GRMN) may be getting a boost to sales this quarter from gift buying for the holidays. I could use a Garmin GPS as a gift (I can't believe I still don't have a GPS). This company has no debt and has $1.2 billion in the bank, amounting to $6.16 per share in cash. The company recently reported earnings and although sales were down slightly, quarterly earnings spiked 33.7% year over year. On top of that, the company provides its shareholders with a fairly generous dividend yield of 3.8%. The stock trades at 19 times forward earnings. The company's growth is coming from the marine and aviation market. In addition, it is expanding into the fitness arena.

The Stock that Brings Water to Crops

Another high cash company is Lindsay Corporation (LNN) which is a maker and marketer of agricultural irrigation systems. This debt free company has over $151 million in cash, which works out to $11.80 in cash per share. Earnings for the quarter ending August 31 were up 19.1% on a 16.1% rise in revenues. The stock has a forward price to earnings ratio of 15 and yields 0.7%. The company boosted its dividend payout by 13% back in August.

The Stock that Gets It There

Expeditors International of Washington (EXPT) is also debt free and has $1.41 billion in cash. This company, which is involved in air and ocean freight logistics services, trades at 22 times forward earnings, with earnings growth for the latest quarter of 4.4% on a slight increase in revenues. Current yield is 1.4%, with its semi-annual payout being increased by 7% in May earlier this year. Cash per share amounts to $6.86.

More High Cash, No Debt, Dividend Paying Stocks

If you like these kinds of stocks with high cash, no debt, and paying dividends, you can get a free list at The list shows the market cap, the forward PE, the cash per share, the yield, and the cash per share versus the price, and more. And if you like this article, please share.

Disclosure: Author didn't own any of the above at the time the article was written.


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